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Sirius and XM to merge

Written by James Delahunty (Google+) @ 19 Feb 2007 14:02 User comments (16)

Sirius and XM to merge Sirius Satellite Radio and XM Satellite Radio have announced that both companies will merge in a stock-for-stock deal. They are the two main U.S. satellite radio providers in the young industry. This deal had been expected for a long time. XM and Sirius plan to combine to create a company with a $13 billion enterprise value (which includes $1.6 billion in net debt).
The deal will go ahead provided it receives regulatory approval. Under the deal, XM shareholders will receive 4.6 share of Sirius. Chief Executive Officer of Sirius, Mel Karmazin, will act as CEO of the combined company and XM chairman, Gary Parsons, will act as chairman of the combined company.

Source:
Reuters

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16 user comments

119.2.2007 14:22

I'm wondering if this will affect the services or not?

219.2.2007 14:28

No idea, source article (Reuters) didn't have any extra info for now, but then again, deal still needs approval so I suppose all of that will be worked out when the time comes.

319.2.2007 19:34

That's cool... I'd assume that would widen the available channels for the user of each?

419.2.2007 20:09

No fight for consumers, could this mean more of a monthly fee or at least more of a fee if you want the other channels.

519.2.2007 21:56
Luke95
Inactive

Yep with these 2 coming together there will not be any competition. So we could face higher prices. I really like Sirius but I will with hold my opinion until this happens (if it does)

Never been an XM Fan I think they advertise a little more then Sirius (on some stations)

620.2.2007 8:11

I thought the price was $12.95/mo. for each company, although one (can't remember whom) of them started out at $9.99/mo.

If they join forces that could actually mean cheaper service if you really think about it as an XM+Sirius subscribtion would normally be ~$26, I would think since they combined the price would drop to ~$20 for both or the "usual" $12.95 for one.

720.2.2007 8:49

Pop_Smith Your not looking at from the right prospective $26 would be more and if you base that on twice as many channels it probably won't work that way.

Its not suppose to raise the monthly so they say and I've heard that the service isn't going to change however that is not realistic it will change and if the government lets this go just one more monopoly that shouldn't exist. This will be a lose-lose for us unfortunately.

Sirius started at $10 monthly for what it is worth. I have both XM and Sirius now and prefer Sirius but if they change their format and start to charge even more I'm done!

821.2.2007 10:47

do I see price lowering and better selection of channles for less than 13 a month plans..no....
10 to 1 since they merged they will hike rates because they are the only game in town.

921.2.2007 16:32

I think they're aware of the limited user base they currently have and probably won't make a price change. It might slow/prevent future price drops but I don't see an increase of any sort.

1021.2.2007 16:43

I would have to agree with darkjello. These two companies are stuggling. They just don't have the numbers to keep their heads above water. To increase prices would be corporacide.



1121.2.2007 16:55

sorry sorry automatic anti conglomerate more ...just smack me when my eyes start to glaze over 0-o

question are any of the main radio station hordes,er corporations backing sat radio or are the paying extra to be able to broadcast local stations?

1221.2.2007 17:03

My dad has sirius, and my mom has XM, the only time anything 'local' is broadcast is for sports, everything else is its own 'channel' so to speak. I would be all over satelite if it sounded better, I don't like the airiness it has.

1322.2.2007 18:11

I bought a lifetime sub w/Sirius the day Howard moved. Glad I did too. I don't expect my plan to change one bit except more channels.

1422.2.2007 22:35

You'd better check your user agreement. I believe lifetime subscription means the lifetime of the radio, not the lifetime of the user.

1523.2.2007 1:43

The product's lifetime is also in jeopardy.

1623.2.2007 2:16

Originally posted by rockjckey:
You'd better check your user agreement. I believe lifetime subscription means the lifetime of the radio, not the lifetime of the user.
It's the lifetime of 3 radios. I don't like change and will stick with a radio until it falls apart. By the time I go through 3 radios, XM and Sirius will be broadcasting in hologram.

It was $500 up front (actually $400. I got discounts on gift cards through FW.) I don't have to worry about mergers, price increases, monthly bills, etc.

Here's what will likely happen to the monthly subs. When XM and Sirius get married there will be a "We love you!!" period where nothing will change. 6 months to a year. Then, BAM! they are going to come out with their first "We're raising the sub fee to give you better service" BS. Just like DirecTV has been doing since they started. And will continue to do it as long as they can get away with it.

With no competition and about 12 million subscribers, it's a lock. I wouldn't be surprised if they didn't plan this whole thing from day one.

I'll say this. Having been w/Sirius for over a year. When I do listen to regular radio, it's corny, cheezy, censored, and commercial ridden. Take away my Sirius is like taking away my cell phone. Ain't gonna happen. At least in my case. Obviously can't speak for anyone else.
This message has been edited since its posting. Latest edit was made on 23 Feb 2007 @ 2:27

"Is that 3 thousand dollar bounty on the shark in cash or check?"

"We can do it the easy way...Or we can do it the REAL easy way."

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